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Coverage roundup: Governor’s closing fund lands EV battery manufacturer
Monday, Sep 11, 2023 - Posted by Isabel Miller * Here you go…
* Forbes | China’s Gotion To Build “Historic” $2 Billion EV Battery Plant In Illinois:Gotion’s investment will be supported by a “Reimagining Energy and Vehicles” incentive package, a new “Invest in Illinois” fund, and “other incentives” worth a total of $536 million, the statement said. Gotion’s will be the first recipient of Invest in Illinois funding following its creation in early 2023 to make Illinois more attractive when vying for large projects in highly competitive sectors like clean energy, the statement said. Gotion was further approved by local authorities for property tax abatement for 30 years. […] However, the economics favor working together, he said. “If the US automakers are going to build profitable (electric) vehicles below a $50,000 price point, then they’re going need Chinese batteries,” [Chairman] Le said. “We don’t have the capacity. We don’t have the mining, we don’t have the refining, and we won’t have it in significant volumes through this decade,” he said. * Sun-Times | Illinois lands Chinese EV battery plant as Pritzker, Duckworth seek more deals with Asian companies:[Senator Duckworth’s] own push to get more Asian companies to do business with Illinois included a personal pitch last month to Ferdinand Marcos Jr., the president of the Philippines, to use Illinois-based ethanol, which is made mostly from corn. She’s also been traveling with members of the Illinois Corn Growers Association, touting the expansion of ethanol will not only help Illinois corn farmers but reduce carbon emissions and the demand for foreign oil. […] “I’ve been working very hard to counter that and say, ‘Here’s the data. Look at the productivity, and in fact, the unions are your friends. The unions can do things like mandatory drug testing and can be partners with management and to bring the most well-trained, the most productive workers to the table,’” Duckworth said. “And LG ended up going into Decatur.” * Tribune | Lured by $500 million in state incentives, Chinese firm plans $2 billion electric vehicle battery plant in Manteno: Officials said full-time workers at the facility would be paid at least 120% of the average wage of similar jobs — or roughly $55,000 a year — in the Manteno area. […] Pritzker’s praise of a Chinese company such as Gotion comes at a time when some Republicans, including Florida Gov. Ron DeSantis, who is vying for the 2024 GOP presidential nomination, have argued against encouraging businesses with ties to China because of the country’s adversarial relationship with the U.S. A Pritzker spokesman dismissed such criticism as “nothing more than political grandstanding.” * Capitol News Illinois | Battery Manufacturing Plant Coming to Illinois With $530M Incentive Deal: The roughly $2 billion project is set to create 2,600 jobs and begin production in 2024. The plant will produce battery cells, battery packs like the kinds used in electric vehicles and large-scale energy storage systems. […] Gotion is also in the process of setting up a plant in Michigan. This has sparked controversy from Republicans in that state, who cite concerns about the company’s Chinese ownership. * Crain’s | Illinois finally lands a big EV battery plant: Pritzker said the state had many things to offer Gotion, but the “deal closing fund,” approved last year by the General Assembly, was critical. “It sent a signal to the nation and the world that Illinois is open for business,” he said. […] Illinois already has two EV assembly plants, Rivian’s factory in Normal and Lion Electric’s facility in Joliet, which makes buses and other commercial vehicles. Just as important, the state has been in extensive discussions with Stellantis, the parent company of Dodge and Jeep, about converting its now shuttered Belvidere plant to make EVs and hopes to eventually get Ford to convert or replace its Torrence Avenue factory on Chicago’s South Side to EV production. * WAND | Gov. Pritzker and Gotion announce new $2 billion EV battery gigafactory in Kankakee County: Illinois will also fund a new manufacturing training academy nearby and award an additional grant to workforce providers to expand training and prepare regional employees for the new jobs. * Center Square | Michigan 3rd in Midwest EV registration race, trailing Illinois, Minnesota: Michigan is trailing Illinois and Minnesota in the Midwest race to register the most electric vehicles. Illinois leads with nearly 80,000 EVs, while Minnesota has 41,417 and Michigan has 34,380. Michigan targets 2 million EVs by 2030, while Minnesota and Illinois each target 1 million by the same year.
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- Bunga - Monday, Sep 11, 23 @ 12:56 pm:
The comment by Duckworth in the Sun-Times article regarding Panasonic possibly setting up a battery plant in Belleville is eye-ball worthy that would require a followup on that.
- supplied_demand - Monday, Sep 11, 23 @ 1:03 pm:
Looks like they spent $125m of the $400m closing fund, according to WTTW. Should leave money for 2 or 3 more big deals. Will be interesting to see if, when, and how much Pritzker asks for the second time around.
- Grandson of Man - Monday, Sep 11, 23 @ 1:06 pm:
“have argued against encouraging businesses with ties to China because of the country’s adversarial relationship”
Republicans would be slamming Illinois and Pritzker as terrible for business if Illinois didn’t get the EV battery plant. Now that talking point is toast. A number of key business expansions have happened in Illinois recently, including casinos. Definitely going in the right direction, which is the professional critics’ worst hope, including those who live and prosper in Illinois but cry about how bad it is.
- btowntruth from forgottonia - Monday, Sep 11, 23 @ 1:20 pm:
“those who live and prosper in Illinois but cry about how bad it is.”
Those are the people that are now complaining that it is a Chinese company getting the money.
Same people who thought Wisconsin getting FoxConn was the greatest thing and wished Illinois could have gotten them.
- btowntruth from forgottonia - Monday, Sep 11, 23 @ 1:22 pm:
“Those who live and prosper in Illinois but cry about how bad it is.”
I know a few of them.
Complaining how awful it is here.
Doing so badly that they’ve never made more money in their lives and can afford a weeklong trip to Mexico.
- Mama - Monday, Sep 11, 23 @ 2:09 pm:
Congrats to our Governor for bringing new jobs to Illinois.
- duck duck goose - Monday, Sep 11, 23 @ 2:15 pm:
(1) Yay for Illinois (banned punctuation)
(2) It is mildly disconcerting that Chinese companies are looking to outsource their manufacturing to the US. Next, France will be touting the superiority of American wine (also banned punctuation)
- JS Mill - Monday, Sep 11, 23 @ 2:45 pm:
=Next, France will be touting the superiority of American wine (also banned punctuation)=
That made me laugh. I am not sure they know we make wine here in the USA.
- Back to the Future - Monday, Sep 11, 23 @ 2:53 pm:
I was kind of caught up in the Pritzker Spin and saw a comment by a Pritzker press person that this corporation was majority owned by VW. It appears that this is inaccurate. As is often said, “Google is my friend”.
I have always been a big booster of everything Illinois and appreciate any new jobs, but these cash subsidies have issues particularly when they involve ownership concerns.
Also I saw Ford is in the same business. Ford has had a manufacturing plant on Torrance since 1924. They actually built the old Model T Ford at that plant. Ford employs over 5800 people. We probably all own Ford stock directly or through index funds as do private and public pension funds in Illinois.
Ford not only has a big employment base, but lot’s of retirees - all of whom have paid lot’s of taxes. Is it good policy to have taxpayers putting out 536 million to a Chinese firm to compete with a company that has been a pretty good influence on this state’s economy?
Just a bit concerned that we are making an investment of 536 million dollars in a foreign controlled competitor to compete with one America’s iconic corporations and a firm that has been employing folks in Illinois for just about 100 years.
If you are an employee, vendor that does business with the Ford factory, a shareholder either directly or through a retirement plan or a Ford retiree in Illinois, you have wonder if your interests were taken into account.
- Hannibal Lecter - Monday, Sep 11, 23 @ 3:03 pm:
=== Next, France will be touting the superiority of American wine ===
Wasn’t that cited in the Book of Revelation as one of the telltale signs that the world is ending?
- Hannibal Lecter - Monday, Sep 11, 23 @ 3:15 pm:
=== Also I saw Ford is in the same business ===
https://www.npr.org/2023/08/08/1192557960/ford-plans-to-make-ev-batteries-in-u-s-with-chinese-company-that-developed-the-t#:~:text=Art%20%26%20Design-,Ford%20plans%20to%20make%20EV%20batteries%20in%20U.S.%20with%20Chinese,relations%20between%20the%20two%20countries.
- Back to the Future - Monday, Sep 11, 23 @ 3:49 pm:
Hannibal Lecter
Thanks for the information.
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